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<br />untiI Borrower makes payment ta bring tb.e Loan current. If Bonower does not do so within a reasonable period of
<br />time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be
<br />applied to the outstanding prineipal balance nnder the NotB immediately grior to foreclosure. Na offset or claim
<br />which Borrower might have now or in the f'uture against Lender shall relieve Borrower from making payments due
<br />under the Note and this Security Instrument or performing the covenants and agreements secur�l by this Security
<br />Inscrument.
<br />Z. ApgHcation of Payments or Proce�,s. Except as otherwise described in this Sectioa 2, all payments
<br />accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note;
<br />(b) principal due under the Note; (c) amounts due under Section 3. Such payments sh.all be applied to each Periodic
<br />Payment in the order in wluch it becanue due. Any remaining amounts shall be applied first to late charges, second
<br />to any other amounts due under this Security InsUvment, and then to reduce the princigal balance of the Note.
<br />If Lender rec�iv� a payment from Borrower for a delinquent Periodic Payment which includes a sufficient
<br />amount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If
<br />more than one Period'ac Payment is outstanding, Lender may apply any payznent receiv� from Borrower to the
<br />repayment of the Periodic Payznents if, and to the extent that, each payment can be paid in fiill. To the extent that
<br />any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may
<br />be appli� to any late chatges due. Voluntary prepayments shall be applied first to any prepayment chatges and then
<br />as described in the Note.
<br />Any application of payments, insurance proceeds, or Miscellaneous Proce�is to principal due under the Note
<br />shall not extend or postpone the due date, or change the amount, of the Periodic Payments.
<br />3. Funds tor Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the
<br />Note, until the Note is paid ist full, a sum {the "Fustds") to provide for payment of amounts due for: (a} taxes and
<br />assessments and other items which can attain priority over this Security Instrument as a Iien or encumbrance on the
<br />Property; {b) leasehold payments or ground rents on the Froperty, if any; (c) premiums for any and all insarance
<br />required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any surns payable by Borxower
<br />to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the pzovisions of Section 10.
<br />These items are called "Escrow Items. ° At origination or at any time during the term of the i.oan, I.ender may require
<br />that Community Association Dues, Faes, and Assesaments, if any, be escrowed by Bocrower, and such dues, fe� and
<br />assessments shall be an Escrow Item. Borrower shall prompily furnish to Lender all notices of amounts to be paid
<br />under this S�tion. Bormwer shall pay I.ender the Funds for Escrow Items unless i.ender waives Borrower's
<br />obligation to pay the Funds for any or all Escrow Items. Lender may waive Roaower's obligation to pay to Lender
<br />Funds for any or all Escrow Items at any time. Any such waiver may only be in wrlting. In the event of such waiver,
<br />Borrower shall pay directly, whea and where payable, the amounts due for any Escrow Items for which payment of
<br />Fwnds has been waivai by I.ender and, if I,ender requires� shall furnish to Lender re,ceipts evidencing such payment
<br />within such time period as Lender may require. Bonower's obligation to make such payments and to provide receipts
<br />shall for all purpos�s be deemed to be a covenant and agresment contained in this Security Instiument, as the phrase
<br />"covenant and agr�nt" is used in Section 9. If Borrower is obligated to pay Escrow Items dire�tly. pursuant to
<br />a waiver, and Bonrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under S�tion
<br />9 and pay such amovn.t and Bonower shall then be obligated under Se�tion 9 to repay to I.ender any such amount.
<br />Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section
<br />15 and, upon such revocation, Borrowe�c shall pay to Lender all �nds, and in snch amounts, that aze then required
<br />under this Section 3.
<br />L,ender may, at any time, collect and hold Funds in an amou�nt {a) sufflcient to permit Lender to apply the Funds
<br />at the time specified under RESPA, and (b) not to exc.�d the maximum amount a lender can require under RESPA.
<br />Lender shall estimate the amount of �unds due on the basis of current data and reasonable estimates of expenditures
<br />of futvre Bscrow Items or otherwise in accardance with Applicable Law.
<br />The Funds shall be held in an insritution whose deposits are insured by a feileral agency, instrunaentality, or
<br />entity (including Lender, if L�nder is an institution whose deposits are sa insured) or in any Federal Home Loan
<br />Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender
<br />NfBRASK�.—Single Family—Fannie Mae/Freddis Mac UNlFORM INSTRUMENT porlNag(c�
<br />Fo�m 3028 1/01 Page 4 of 14 www.docmagJc.�m
<br />Ne307B.doc.:M
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